Fontana eyes increased revenues with Portmore’s addition
Expecting to bring a new shopping experience to Portmore, Fontana Pharmacy is optimistic that the addition of its newest location will help to continue the growth momentum that resulted in record sales in the last financial year.
Audited numbers for the 2022 financial year shows increased revenues of $7.3 billion, a billion more or 15 per cent above the previous year, followed by increased profits of $655 million.
“We are extremely happy with the performance given the high inflationary environment and reduced discretionary spending. When we look at other similar businesses in the retail industry, their results are not as good, so I think we are well poised going into Portmore,” CEO of Fontana Anne Chang told the Jamaica Observer.
The Portmore store, which marks the seventh location, is now in an advance stage of readiness, as it prepares to welcome customers in the next few months. Smaller in size at approximately 25,000 square feet, its addition follows the flagship Waterloo Store, which opened in 2019.
Lauding its ability to grow revenues in the face of higher operational cost, Chang credits the company’s investment in its new Eagle point of sale system, which she said significantly helped to keep much of the expenses at a minimum.
“We negotiated well in the face of increasing security, insurance, and software support costs as we pushed to keep costs at a manageable level. Cash flows improved by 4.4 per cent ending the year at $1.6 billion compared to $1.5 billion, and this in a year where CapEx [capital expenditure] was on the increase in preparation for the new Portmore store,” the company’s directors also said in the report to shareholders.
Chang, who remains upbeat about the future expansion of the pharmacy chain, said its management is “always on the lookout” for more growth opportunities.
“We are not finished with Jamaica—there are definitely more Fontanas on the horizon. At the moment we are, however, working to get through with Portmore first…our stores take a lot as they are not the typical pharmacy that can be opened in a month,” she told the Caribbean Business Report.